Weekly chart
After a week of sustained bullish move we can say that we are in an uptrend in the coming weeks, since in the previous week the price found support around 0.9155 where it is located on line 3/8 (green line) that has to be the basis of their range of rates and last Thursday, according to the chart of days, it did cross the center line 4/8 (blue line) the same which is regarded as an important line of support or resistance and in the case of the USD/CHF pair came acting as the major resistance at 0.9277, so that the price level has been now converted into a support area on which we believe the price will move in this first week of the month.
Daily chart
On the daily chart a similar picture where the USD/CHF pair trades at 0.9324 right now with upward direction is observed, because if we look at the indicator of sales force decreases and trend indicator shows an upward bias. This allows us to provide a probable rise in the first tranche to extend to 0.9399 and then 0.9521. But taking into count that the Forex market is not a market that can be predicted with 100% reliability, it is suggested to place a stop below 0.9277, may well be at 0.9247, as a candle closing below line 4/8 it would again prove bearish picture.
4-Hour chart
However, the 4-hour chart shows that before continuing its upward trend, it is likely that the USD/CHF pair has a setback at least to 0.9277 because at this time the price is in an area bounded by extreme overshoot line +2/8 plus the top line of the uptrend channel, therefore we can expect a decline to the area of the center line of the trend channel line and 8/8 Murrey lines.
Therefore, our recommendation for today, based on the three graphs analyzed is:
Ready-to-long term buy position at 0.9277 or as close as possible to minimize the risk with a stop loss at 0.9244 and take profit around 0.9640.
If you have any questions or suggestions, please contact:
Email:antonio.inga@analytics.instaforex.com
